Howard Risher - Aligning Pay and Results: Compensation Strategies That Work from the Boardroom to the Shop Floor

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title	:	Aligning Pay and Results : Compensation Strategies That Work From the Boardroom to the Shop Floor
author	:	Risher, Howard W.
publisher	:	AMACOM Books
isbn10 | asin	:	0814404588
print isbn13	:	9780814404584
ebook isbn13	:	9780814424001
language	:	English
subject	Compensation management, Wages and labor productivity, Wage payment systems, Executives--Salaries, etc.
publication date	:	1999
lcc	:	HF5549.5.C67A355 1999eb
ddc	:	658.3/22
subject	:	Compensation management, Wages and labor productivity, Wage payment systems, Executives--Salaries, etc.

Page iii Aligning Pay and Results Compensation Strategies That Work from the Boardroom to the Shop Floor Howard Risher, Editor Senior Fellow, Center for Human Resources, Wharton School

Page iv Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details contact Special Sales Department, AMACOM, an imprint of AMA Publications, a division of American Management Association, 1601 Broadway, New York, NY 10019 Tel. 212-903-8316 Fax. 212-903-8083 This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Library of Congress Cataloging-in-Publication Data Aligning pay and results : compensation strategies that work from the boardroom to the shop floor / Howard Risher, editor. p. cm. Includes bibliographical references and index. ISBN 0-8144-0458-8 1. Compensation management. 2. Wages and labor productivity. 3. Wage payment systems. 4. ExecutivesSalaries, etc. I. Risher, Howard. II. American Management Association. HF5549.5.C67A355 1999 658.3'22dc21 99-25896 CIP 1999 AMACOM, an imprint of AMA Publications, a division of American Management Association. All rights reserved. Printed in the United States of America. Published in cooperation with American Compensation Association. This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, an imprint of AMA Publications, a division of American Management Association, 1601 Broadway, New York, NY 10019. Printing number 10 9 8 7 6 5 4 3 2 1

Page v CONTENTS Preface vii Chapter 1 Aligning Pay and Results Howard Risher 1 Chapter 2 Moving to a Pay-for-Performance Strategy: Lessons From the Trenches Edward Sullivan 21 Section ILinking Executive Pay to Performance 39 Chapter 3 Aligning Executive Pay and Company Performance Richard J. Barrister, Jr. and William Gentry 43 Chapter 4 Aligning Executive Pay and the Creation of Economic Value Jude T. Rich 80 Chapter 5 Aligning Compensation and Stock Ownership Eric P. Marquardt 101 Chapter 6 Aligning Directors' Compensation With Company Performance Pearl Meyer 119

Page vi Section IIAligning Base Pay and Employee Capabilities 141 Chapter 7 Paying for Competencies: Rewarding Knowledge, Skills, and Behaviors James T. Kochanski and Howard Risher 145 Chapter 8 Paying Employees to Develop New Skills N. Fredric Crandall and Marc J. Wallace, Jr. 172 Section IIIAligning Pay and Group Results 207 Chapter 9 Aligning Pay to Group Results Thomas B. Wilson 211 Chapter 10 Aligning Pay to Team Results Steven E. Gross 236 Chapter 11 Global Pay and Results Neil K. Coleman 259 Chapter 12 Communicating Pay: Using Marketing Principles to Sell Compensation Richard J. Anthony, Sr. 274 Section IVConclusion 293 Chapter 13 Using Pay as a Tool to Achieve Organizational Goals Howard Risher 295 About the Contributors 313 Index 319

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